The fixed income derivative markets have experienced tremendous growth over the past several years. Much of this growth has occurred in the over-the-counter (OTC) markets. The purpose of this class is to provide an overview of these markets, with particular emphasis on the fixed income OTC markets (perhaps better known as the swaps market).
The course will examine a variety of the derivative products which are actively traded. Emphasis will be placed on understanding how the products are structured, how they are priced and how they are used as either risk management tools or yield enhancement trades.